ET - AGNC's Dividend Isn't Worth the Headache. Buy This High-Yield Stock Instead.
2023-12-14 06:36:00 ET
AGNC Investments (NASDAQ: AGNC) offers one whopper of a dividend. The mortgage-focused real estate investment trust (REIT) currently yields an eye-popping 16%. That's over 10x higher than the S&P 500 's dividend yield.
While there's reason to be optimistic that the mortgage REIT can maintain its big-time payout in 2024 , its long-term sustainability remains a big question mark, given its history. Because of that, it's probably not worth the headache of dealing with another dividend cut.
Instead, yield-hungry investors should consider buying Energy Transfer (NYSE: ET) . The master limited partnership (MLP) offers a 9.5%-yielding distribution that it should be able to steadily increase in the future.
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AGNC's Dividend Isn't Worth the Headache. Buy This High-Yield Stock Instead.